Members of Parliament on Thursday directed the New Kenya Co-operative Creameries (KCC) to consider halting their supply of milk to the State House and other government agencies that cannot pay.
The move comes following concerns raised by the Co-operatives Creameries over unpaid debts by several government agencies including President William Ruto’s office.
Cooperatives Principal Secretary Patrick Kilemi, while appearing before the Trade Committee, revealed that the unpaid debts had immensely hampered the operations of the cooperative.
The committee led by Chairperson and Embakasi North MP James Gakuya reiterated that New KCC was a business and should not allow its operations to be hindered by government entities not paying for the milk supply.
"New KCC is in business and no one compels you to keep supplying milk to government agencies that still owe you money,” Gakuya told PS Kilemi.
"You cannot tell farmers that you can't pay them because government bodies owe you," the MP added.
According to the PS, the Ministry of Defence and the Administration Police Service were the largest debtors, owing Ksh49.49 million and Ksh32.38 million, respectively.
Other debts included Ksh14.62 million owed by the State House, Ksh10.53 million by Kenyatta National Hospital, and Ksh6.79 million by the presidency.
The Kenyatta National Hospital Private Wing and Moi Teaching and Referral Hospital owed Ksh4.45 million and Ksh4.04 million respectively.
Additionally, the National Security Intelligence Service, the Office of the First Lady, and the Nairobi Water and Sewerage Company owe Ksh4 million, Ksh3.07 million, and Ksh2.27 million, respectively.
"New KCC is failing to meet its obligations because of supporting government agencies. We need the help of this committee for the outstanding debt to be paid," PS Kilemi told the Committee.
PS Kilemi further revealed that the delays by the various government agencies to pay the debts had in equal measure caused delays in payments to dairy and coffee farmers.
